Volkswagen Taps Audi's Scott Keogh As New North American Boss

Scott Keogh, head of Audi of America, will switch jobs on November 1st. The 49-year-old, who joined Audi in 2006 and ascended to the U.S. president’s chair in 2012, will take over Volkswagen’s North American operations next month, replacing Hinrich Woebcken.

While Keogh’s predecessor began easing VW in a new direction in the wake of the diesel emissions scandal, Keogh needs to be just as much of a fixer.

One thing working in Keogh’s favor is the gradually increasing autonomy VW Group gave to its North American unit. In the diesel scandal’s wake, the automaker turned North America into its own region, allowing its representatives to have more say over product and respond in a quicker fashion to changing consumer demand. It took a company-rocking scandal to get HQ to let out the leash a bit.

During his fairly short time at the helm, Woebcken eased tensions between dealers and the brand and helped the company pivot towards a utility vehicle-focused U.S. product strategy. In less than two years, the floodgates will open on a slew of VW-badged electric vehicles. It’s hardly business as usual at VW of America.

“Hinrich J. Woebcken has brought the Volkswagen brand back on track for success in the U.S. and the North American region. Considering the challenging conditions, these achievements deserve my dedicated recognition,” said Dr. Herbert Diess, CEO of Volkswagen AG, in a statement. “After the successful comeback of the Volkswagen brand, Scott Keogh, who led Audi to excellence in the U.S., will build upon the momentum and implement the next stage in the growth strategy as we continue to develop Volkswagen into a more relevant player in North America.”

Despite appearing to be on the right track, VW has a number of issues in need of mending. According to Automotive News, the brand’s U.S. dealers are among the least profitable in the country. At Audi, Keogh helped turn around a struggling dealer network by allowing them to purchase loaners at factory cost, boosting profitability when it came time to sell. Customer service scores also saw a boost under Keogh’s leadership — another area where VW needs help.

To reach Diess’s goal of achieving a 5 percent market share in the region, new products rolling out of Wolfsburg will need a good sales pitch, coddled customers, and appealing window stickers. Helping that goal is a new, yet-unnamed small crossover designed (at least initially) solely for this market. The midsize Atlas will soon spawn a sportier, two-row variant and possibly a pickup truck.

At the end of September, the brand’s U.S. sales were up 5.5 percent on a year-to-date basis.

Woebcken assumed his current position in April 2016 and will remain as an advisor after Nov. 1st. Replacing Keogh at Audi is Mark Del Rosso, president and CEO of Bentley’s American arm. Del Rosso sets up shop at Audi on December 1st.

[Images: Volkswagen of America]